Pricol Limited and Denso Corporation have entered into a joint venture agreement to cater to instrument clusters for Japanese car makers.
The Competition Commission of India has already given its clearance for the joint venture.
Managing Director of Pricol Vikram Mohan told The Hindu that the joint venture, in which Denso would have 51 per cent stake, commenced operations on Tuesday with headquarters in Coimbatore, and it would soon be renamed as Denso Pricol.
Pricol informed the BSE on Tuesday that as approved by the shareholders through postal ballet, Pricol entered into a slump sale agreement with its wholly-owned subsidiary Pricol Components Limited for transfer of its DENSO Technology Instrument Cluster Undertaking located in Coimbatore and Manesar to Pricol Components. Subsequent to the agreement, the slump sale was made on April 22.
Mr. Mohan said that through this Pricol had sold its existing business related to the four-wheeler personal passenger vehicles for Maruti Suzuki India Limited and Toyota Kirloskar Motor Private Limited to Pricol Components.
According to the agreement, upon transfer of DENSO Technology Instrument Cluster, Denso would acquire 51 per cent stake in Pricol Components.
